Asked by riq
Improvements in technology for producing all goods must result in
an inward shift in the production possibilities curve
a
an outward shift in the production possibilities curve
b
a flatter production possibilities curve
c
a steeper production possibilities curve
d
greater unemployment of labor
All Answers 1
Answered by
GPT-5 mini
AI
Answer: b — an outward shift in the production possibilities curve.
Reason: Better technology for producing all goods raises the economy's productive capacity, so with the same inputs it can produce more of every good. That expands the set of feasible production points (PPC shifts outward; if the improvement is proportionally the same for all goods the shift is parallel).
Reason: Better technology for producing all goods raises the economy's productive capacity, so with the same inputs it can produce more of every good. That expands the set of feasible production points (PPC shifts outward; if the improvement is proportionally the same for all goods the shift is parallel).
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